Bloomberg News

Fusion-io Surges on Sales Forecast and Acquisition of NexGen (1)

April 25, 2013

Fusion-io Inc. (FIO:US), a maker of data- storage computers, climbed the most in eight months after forecasting sales that topped analysts’ estimates and announcing the acquisition of NexGen Storage Inc.

Revenue in the fourth quarter, which ends in June, will be about $110 million, the Salt Lake City-based company said yesterday in a statement. That’s higher than the average analyst estimate of $107.5 million, according to data compiled by Bloomberg.

Fusion-io, whose biggest customers (FIO:US) include Apple Inc. (AAPL:US) and Facebook Inc., is aiming to sell to small and medium-sized businesses with more affordable flash-memory-based services. The company said it purchased NexGen for about $119 million in cash and stock, and is already promoting NexGen’s hybrid storage product on its website.

Fusion-io rose (FIO:US) 20 percent to $20.03 at 9:46 a.m. in New York, and earlier touched $20.20 for the biggest intraday gain since August. The stock had dropped 27 percent this year through yesterday, compared with an 11 percent gain for the Standard & Poor’s 500 Index.

While revenue in the fiscal third quarter fell 7 percent to $87.7 million, it topped the $80.4 million average analyst estimate. Fusion-io said its net loss widened to $20 million, or 21 cents a share, from $4.68 million, or 5 cents, a year earlier.

Fusion-io, which employs Apple co-founder Steve Wozniak as chief scientist, sells corporate storage computers based on flash memory, which is faster and more expensive than widely used magnetic disk drives.

NexGen, based in Louisville, Colorado, introduced its product in November 2011, a week after saying it raised $10 million from Next World Capital, Grotech Ventures and Access Venture Partners.

“This would take years to build out as a stand-alone company,” NexGen Chief Executive Officer John Spiers wrote yesterday in a blog post. “Overnight, those concerns are eliminated.”

To contact the reporter on this story: Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


Soul Searcher
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • FIO
    (Fusion-io Inc)
    • $9.54 USD
    • 0.38
    • 3.98%
  • AAPL
    (Apple Inc)
    • $519.01 USD
    • 1.05
    • 0.2%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus